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PACC Offshore Services narrows losses in Q2

Offshore marine services provider, PACC Offshore Services Holdings' (POSH) net loss narrowed to US$5.8 million from US$11 million a year ago for the second quarter ended June 30, 2018.

Revenue nearly doubled to US$83.14 million mainly due to improved average daily charter rates and improved utilisation. Loss per share for the quarter came to 0.32 US cent, compared to a loss per share of 0.6 US cent previously.

The bottom line was weighed down by increased general and administrative expenses, as well as higher finance costs.

In addition, the group’s share of joint ventures’ results registered a loss of about US$1 million compared to a profit of US$2.58 million in Q2FY17. This was largely contributed by the net loss incurred by POSH Terasea in Q2FY18 as a result of lower vessel utilisation.

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For the six-month period, net loss narrowed 56 per cent to US$12.99 million, while revenue jumped 99 per cent to US$153.71 million.

POSH said: "Whilst market sentiment is more positive amid signs of increased investment and capex in offshore oil field development, the oversupply of offshore supply vessels continues to exert pressure on both utilisation and charter rates. The two semi-submersible accommodation vessels will remain employed in current charters until Q3FY18, and POSH Xanadu will commence her new charter to Petrobras in December 2018 for a firm period of 8 months and with an option to extend for a further 8 months."

The counter closed at 30.5 Singapore cents when it last traded on Friday.